This is the kind of article that causes trouble. Notice how it's written, there is certainty and credibility. The predictor is a scientist. Credibility.
More credibilityMartenson’s opinion isn’t to be taken lightly, as his research is highly regarded by the United Nations, UK Parliament, and Fortune 500 companies.
Shocking, alarming, dreaded. Scare tactic.His shocking forecast is based on a new alarming pattern he’s identified — he’s calling it “a dreaded triple top”
This proven pattern suggests...
http://www.moneynews.com/MKTNews/Financ ... /id/494569/
Unfortunately, Martenson is not the only economist predicting a massive, historic meltdown. In fact, his figures are conservative compared to other experts in his field.
And on it goes. This type of article is meant to scare you. Are you scared? Concerned? In the throws of a market crash, even at the bottom, articles like this are everywhere, and they are scary.
One other thing to keep in mind--events and data do not cause market crashes--investor behavior does. In strong markets like we are experiencing now, investors claim they won't sell in a crash, but the record can't be ignored--the market goes down because investors sell. Last thing to remember is when the market drops by 50%, it is the share price that drops, you do not lose any of your shares. So, the best you can do is continue to hold your shares and wait for sentiment to reverse and investors start raising prices again. But don't fool yourself, it is very difficult to watch your hard-earned money disappear. After graduating Panic 101, maybe you'll be a little more prepared. Get used to stuff like the linked article and DO NOT sell when markets drop. If the article concerns you at all, check your asset allocation to be sure you not exposed to a level of risk you may not be able to handle.